Most of the USS Enterprise-D crew accept Picard's death, and plan on attending a memorial service arranged by Troi. However, Riker refuses to attend the service, and is instead focused on finding out who murdered Captain Picard. His refusal starts an argument between the two, with Troi telling him he does not have the monopoly on loss and that all of the crew is hurting. Riker pulls rank on Troi, "That is enough, counselor!". As she turns to leave he offers a heartfelt apology.

AdmiralChekote offers his condolences to the commander and questions his request to delay a mission to the Argus sector. Riker asks the admiral to investigate Picard's death on the basis that he lacks the confidence with the authorities on Dessica II - one of which is known corruption. Admiral Chekote agrees with Riker but asks if he is capable of pursuing this matter. Riker answers that while he may not be objective, he states that he is determined to find those responsible and will not rest until he does. Satisfied, Admiral Chekote grants his request by placing the Enterprise on detached duty and wishes him luck in his investigation.

Riker interrogates Yranac in his assigned quarters. When the Yridian asks for an Enterprise shuttle in exchange for further information, Riker throws him against the wall and threatens to turn him over to the Klingon Empire due to his having twelve outstanding warrants for fraud and petty theft. Yranac tells Riker that those who killed Picard mentioned the Barradas system. Riker sets course for the system.

The crew arrives at the system's only Class Mplanet, Barradas III, which happens to also be home to a two thousand year-oldDebrune archaeological site. Despite the planet being unpopulated, sensors detect energy signals from the surface. After beaming down, the crew discovers that most of the artifacts have been stolen, and the ground has the same micro-crystalline damage that was found on Dessica II. While Riker, Worf, Geordi La Forge, Kellogg and a few ensigns are exploring, a variety of humanoids attack the away team, killing one ensign. While trying to set up a crossfire, Riker is knocked down from a blast. The attacking party lay down suppression fire on the away team making them unable to retaliate and beaming off planet with a captured Commander Riker.

La Forge briefs Data on the attack just as a mercenary ship appears on sensors readying to attack the Enterprise. Data raises shields and calls for red alert as the mercenary ship opens fire, doing no damage to their shields. The Enterprise pursues the mercenary ship but the ship fades out of their sensors, and escapes. Data then orders the helmsman to return to the planet.

In a briefing, Data informs the senior staff that Starfleet Intelligence has confirmed that the mercenary ship have been involved in many raids in this sector. The advantage they have is they are virtually undetectable by their long range sensors.

Riker is taken aboard the mercenary ship, which is commanded by Arctus Baran. Riker finds that a neural servo has been implanted within his body which allows Baran to inflict severe pain on him. Everyone on the ship has similar devices implanted in their necks, which is how Baran controls his crew. As the crew argues over the ramifications of having a Starfleet officer onboard, a "smooth-headed" crew member demands that Riker be killed immediately. As he turns, Riker sees that it is Picard.

Riker discovers that Picard is posing as a smuggler named Galen. Picard tells the crew that he is familiar with Riker – he is a Starfleet officer with a history of insubordination who was once even relieved of duty due to a "Cardassianincident at Minos Korva." Riker plays along, acting the part that Picard is describing. Picard then secretly manufactures an intermix chamber malfunction, giving Riker a chance to fix the malfunction and prove himself to Baran.

Later, Picard visits Riker in his quarters and reveals that he went to study an archeological site on Dessica II, only to find that it had been ransacked. Tracing those responsible to a bar, Picard confronted them, but was captured and taken prisoner. Picard explains that the criminals have configured some of their weapons so that if they shot someone or something, it activates the transporter and beams them away - which is why the people in the bar thought he'd been vaporized when shot. Picard reveals that they are looking for specific ancient artifacts of Romulan origin, and that Baran is having Picard search through the relics they've stolen for these specific artifacts.

Picard asks Riker to help him infiltrate the crew of the mercenary ship. As Picard and Baran had never gotten along very well, Picard asks Riker to befriend Baran to help learn more about his plans. Picard also asks Riker to play into the role of a less than perfect, insubordinate Starfleet officer who is ready to betray the Federation. When Baran suddenly enters the quarters, Picard backhands Riker and he falls to the floor. Picard tells Baran that he was interrogating Riker for information that he couldn't get from him. Baran forcefully insists to "Galen" that he is to be informed when any interrogations are being conducted on his ship by activating the neural servo on Picard's neck. After recovering from the shock, Picard leaves and kicks Riker on his way out.

The mercenaries travel to Calder II in order to obtain more artifacts from a Sakethan burial mound, despite the fact that the planet is also home to a Federation science station. Picard convinces Baran to use Riker to gain access to the planet in order to avoid a battle. However, Riker is unable to convince the outpost's Lt. Sanders to drop their deflector shield without proper authorization from the Federation Science Council. Before Baran can order the outpost destroyed, Picard configures the disruptors to fire a phase-resonant pulse at the precise frequency to disable the outpost's shields with one shot. With the shields down, the mercenaries begin beaming the artifacts from the planet, getting all but two before the outpost re-raises their shields. Just as Baran orders the outpost destroyed, their ship is hit by phaser fire from the just-arrived Enterprise.

Riker orders acting captain Data to disengage

Baran threatens to kill Riker unless he orders the Enterprise to retreat. Riker hails the ship and orders Acting CaptainData to disengage. Then, Riker attempts to use his access codes to bring down the Enterprise's shields, knowing that his codes would have been changed upon his capture. Data understands the ruse, and drops the shields, despite Worf's objections. As soon as the shields drop, Picard opens fire, and a disrupter blast strikes the Enterprise's starboard warp nacelle, seemingly crippling it.

"My friend tells me you know something about the man we're looking for.""The only reason I'm talking to you is that I have a sister too."
[Riker looks questioningly at Worf]"I explained to him that we are looking for a man who impregnated your sister."
[Riker nods]"So you can imagine how much this means to me."

- Riker, Yranac and Worf

"I think you've had a little too much to drink. You better leave. On your way, Yranac."
[Crusher pulls a phaser on the bartender]"I'm sorry, but I think he wants to stay. Sit down.'""That's my sister. She's angry. She's got a vicious temper. I wouldn't cross her."

- The alien bartender, Crusher and Riker

"You'll like this. The man got what was coming to him. When they knocked him down, one of them took out a weapon and fired. He was vaporized!"
"He's telling the truth."

- Yranac talking about Picard's "fate" while Troi confirms his story

"I have an open wound. Right here, it hurts like hell. I don't want it to get better, and I don't want to pretend that everything's alright.""I know you're angry...""You're damned right! And I intend to stay angry until I find whoever's responsible for the captain's death.""Well that's pretty selfish of you! Do you think you're the only one in pain?! Do you think you have the monopoly on loss?! Well let me tell you something: we're all hurting! And we're all angry, and whether you like it or not, you have a responsibility to this crew! And you can't just indulge your personal desire for revenge!""That is enough, counselor!"

- Riker and Troi mourn the captain

"The captain died in a bar fight for nothing. Somebody has to answer for that. Then, I can mourn."

- Riker, to Troi

"I read your report, commander. My condolences to you and to your crew. Captain Picard's death is a loss to the entire Federation."

- Chekote, to Riker

"If Captain Picard were here..."
"He's not."
"I realize that, sir. But if he were and he wanted to lead an away team, you would tell him that the captain's place..."
"...is on the bridge. Not this time."

- Data questions Riker's decision to accompany the away team to Barradas III

"Gambit" grew out of a spec script submitted by Christopher Hatton back in the sixth season. The story broke one of Gene Roddenberry's long-standing Star Trek taboos – specifically, that there would be no such thing as space pirates. Although initially skeptical, Michael Piller and Jeri Taylor later returned to Hatton's story as it provided an opportunity for a "less talky romp". Rick Berman, aware of the taboo but willing to consider the proposal, tied a red bandanna around the bust of Gene Roddenberry on his desk while discussing the story. He explained, "I just blindfolded it as a joke one day. Whenever they come up with a story I don't think Gene would like I blindfold him when we discuss the story...I take it on and off, depending on who's in here." (Star Trek: The Next Generation Companion)

Naren Shankar observed, "We say we'll never do the 'rodeo' show and "A Fistful of Datas" comes along." Shankar was unsure whether the story would work expanded into two parts. "To me, it's one of the classic television problems: if you start off the show by saying the captain's dead, no one's buying it...and you're just marking time until the captain's revealed." (Star Trek: The Next Generation Companion)

Brannon Braga was one of the story's opponents. "When the story was purchased, I was not attracted to the campy, swashbuckling elements and was afraid it would just look very corny. I don't think we do campiness very well – especially in the way we tried to do it with 'Gambit.' It came off like Buck Rogers: The Series and why do that? Is that good? We try many different mediums. I was curious as to why we were involving ourselves in a medium that is not usually a respected one." (Captains' Logs: The Unauthorized Complete Trek Voyages)

This episode contains the longest phaser fight shown on screen, with over seventy shots. According to the Star Trek: The Next Generation Companion, all explosions were done in post-production due to a fire season ban on live explosives on location at Griffith Park's Cedar Grove. Likewise, all damage stains on rocks were done digitally.

On casting Richard Lynch as Arctus Baran, Jeri Taylor commented, "Richard was simply the best person who read for the part. Peter Lauritson who directed the first episode, knew his work, liked him, and really wanted him. It's always a problem to find worthy adversaries for Picard. You need an actor who has the power, stature, and presence to go toe to toe with him and if you don't have that, you don't have an episode. Richard brought all of this and for his campiness and the sort of stereotypical things he has done, he has that undeniable power and I thought it was a good trade." (Captains' Logs: The Unauthorized Complete Trek Voyages)